The bread and butter of any company is the profit it makes on projects. But how is that profit calculated and more importantly — calculated correctly? 🤔 On this week's blog, learn the best way to crunch pay rates and bill rates for your next project 👉 https://lnkd.in/dAd9-dEM
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"I had no idea we were losing money on these projects!" 🤯 A lot of times we find that businesses properly factor in overhead costs and the costs for materials and other expenses... ...and maybe they even know exactly how much they're spending on payroll each month, but... ...they have no idea how long each project is taking their team to complete, and sometimes they're losing money on a project after paying their employees' hourly wages + taxes! 😬 Using project tracking to account for team income, expenses & hours allows businesses to respond appropriately by: ✅ Retraining the team to be more efficient ✅ Adjusting their pricing ✅ No longer offering the service altogether When's the last time you looked at team time per project, and how it affects your profit margins? #ProjectManagement #ProfitLoss #TimeTracking #BusinessEfficiency #payrollmanagement #ProfitMargins
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The Ditching Hourly Guy • I help solo consultants make more and work less w/o hiring • Get pricing tips by subscribing to my mailing list (see featured section for a link)
Hourly billing isn't a way to control scope creep. It actually CREATES scope creep. Here's how: Hourly billing allows you to get started working on your client's project _without knowing what their desired business outcome is._ It's like shooting free throws with a blindfold on. Sure, you MIGHT hit a shot, but it's probably going to take a lot more throws than if you could see the hoop. So what happens all too often is this: You burn through their budget, and the client isn't happy because what they told you to build was the wrong thing. This puts them in a horrible situation: 1. Kill the project and eat the sunk cost, or 2. Continue spending and hope that it doesn't take TOO much longer. Sunk cost being what it is, they usually choose 2, and the relationship degrades quickly. The longer things take, the worse it gets. Is this situation the client's fault? Maybe. You only did what they told you to do. But aren't YOU supposed to be the expert? ---- Hi! I'm Jonathan Stark Click my name + follow if you want to learn how to make more and work less without hiring. Get Daily Pricing Tips Join 10k+ Daily Readers Like this post? Hit 👍 Love it? Leave a comment ✍️ Think others should read it? Repost ♻️
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🔴 𝐈𝐂𝐘𝐌𝐈: 𝐅𝐎𝐑 𝐂𝐎𝐌𝐌𝐈𝐒𝐒𝐈𝐎𝐍 𝐑𝐀𝐓𝐄 𝐂𝐀𝐋𝐂𝐔𝐋𝐀𝐓𝐎𝐑 𝐈𝐍 𝐄𝐗𝐂𝐄𝐋 https://lnkd.in/gyYA8KFx GRAB THIS WORKBOOK FOR FREE HERE: https://lnkd.in/gpUjtU24 Did you miss my incredible 'Commission Rate Calculator' training? No worries! Here's a quick recap: I revealed how to effortlessly calculate commissions using an incredible commission rate calculator template and application. The training covered: • Unlimited Commission Types • Flat & Incremental Commissions • Up To 10 Tiers Per Commission • Handling Unlimited Employees • Managing Unlimited Payrolls • Accessing a Mini-Dashboard Don't fret if you missed it! You can still watch the replay and stay tuned for more exciting content and training updates. 👉 WATCH IT HERE: https://lnkd.in/gyYA8KFx #CommissionRateFormula #CommissionRateCalculator #CalculateCommissions #EmployeeCommissions
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Hourly billing vs. Value-based pricing...
Hourly billing, while common in many industries, does have its drawbacks. 1. Encourages Inefficiency 2. Punishes Expertise and Efficiency 3. Creates Conflicts of Interest 4. Lacks Transparency 5. Focuses on Input Rather Than Output I prefer value-based pricing, which may better align with client needs and encourage efficiency and collaboration. Are you a fan of hourly billing?
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Hourly billing, while common in many industries, does have its drawbacks. 1. Encourages Inefficiency 2. Punishes Expertise and Efficiency 3. Creates Conflicts of Interest 4. Lacks Transparency 5. Focuses on Input Rather Than Output I prefer value-based pricing, which may better align with client needs and encourage efficiency and collaboration. Are you a fan of hourly billing?
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Standard Costing Simplified: Key Strategies for Financial Success What is Standard Costing? In a competitive market, standard costing is a method used to provide a clear, accurate budget, helping manufacturing businesses manage their costs more effectively. It pinpoints where they can cut costs or where they might need to invest more, keeping businesses agile and informed. A "standard cost" is the expected cost for producing one unit of whatever you're making. It takes into account the anticipated costs for materials, labor, and overhead—everything from buying raw materials to paying for the electricity used. This cost acts like a yardstick, helping businesses measure how well they're doing financially by comparing what they thought they would spend against what they actually spend. Click on the link to learn more: https://lnkd.in/dZwU5CVD . . . The Remote Bookkeeper stefan@theremotebookkeeper.co.za +27 83 655 8467 Check out our website: https://lnkd.in/gNHAeRYN #TheRemoteBookkeeper #Accounting #StandardCosting
Standard Costing Simplified: Key Strategies for Financial Success — Accounting Weekly
accountingweekly.com
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💰Expert bookkeeper helping interior designers create financials that are as beautiful as the spaces they design
Ever wondered about the distinction between owner's draw and salary? To help answer this question, we’ve broken down the differences in this post. As a reminder the decision to take a salary or an owner's draw depends on the specific circumstances of your business and financial situation. The legal structure of your business can impact your ability to take an owner's draw. For example, if you own a single-member LLC, or are part of a multi-member LLC, you’ll need to use the draw method to pay yourself. LLC owners are not allowed to pay themselves a regular salary. An S-corp is structured as a corporation, there is no owner’s draw, only shareholder distributions. But a shareholder distribution is not meant to replace the owner’s draw. Instead, you must take a salary as a W-2 employee. Not sure which you should be taking or how to record it properly? Schedule a call with us today to ensure your financial records are accurate and your business stays on track! https://lnkd.in/eq2Zzv9B #Salary #EntrepreneurLife #bookkeeping #accounting #bookkeeper #quickbooks #interiordesign #interiordesigns #interiordesigner #interiordesigners #interiordesignerslife #interiordesignersofinsta #interiordesigning #interiordesignideas #architect #architects #architecture #Floridabookkeeper #FloridaAccountant #ModernBalance #BookkeeperShannon
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Working with trade & construction companies to help them know their numbers | Construction Accounting Specialist | Finance Department | Cashflow | Profitability | Automation | Controls
If there was ever a time to have scenario planning built into your cashflow then it is now 💡 . Most Trade and Construction Businesses will be back to work this week: - Facing delays in payments from main contractors/customers ❌ - Have just paid staff 2 weeks holiday pay with wages due end of month 👷♂️ 👷♀️ - With an Order Book not filled up for Jan but plenty of potential work in the pipeline 🏗 Not to mention payments to suppliers, HMRC and the potential weather issues in January impacting work ❄. If you would like to look at how you can build these scenarios to see your cash position, give me a shout 👨💼 . #empowered #cashflow #construction #constructionaccounting
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Personal Finance Consultant- Helping women achieve financial success by providing the knowledge and confidence needed to navigate their money, eliminate debt, and build a solid foundation| Self-Worth Builder
Monday's money tip: Creating a budget that works for you is the only budget that you'll stick with. Here are a few steps to either get you started or tweak what isn't working: 1. Track your spending by either doing a look back at the last 30 days or start fresh. 2. Tag expenses as either fixed or variable. 3. Ask yourself if your spending is in line with your top priorities. 4. Create your budget by assigning an allowance to each expense. Be realistic so you don't set yourself up to fail. (I can not emphasize enough to automate, automate, automate where ever you can!) 5. Breaking expenses down into weekly amounts can make it easier or set it up by your payroll cycle. Do whatever works for you. 6. Track your progress on a weekly basis at a time that works with your schedule. The most important tip - remember to celebrate your progress! (free budget tool in comments👇)
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🔍 How Often Do You Review Your Finances? 🔍 Hey, small business owners! We want to hear from you! How often do you sit down and really review your finances? Once a month? Once a year? Or... hardly ever? 🤔 Believe it or not, 60% of small business owners admit they don't feel knowledgeable about accounting or finance. That's a lot of us who might be missing out on crucial insights! 📊 We get it—life is busy, and running a business is a full-time job (plus overtime!). But here's a shocking fact: businesses that review their finances monthly are 2x more likely to grow compared to those that don't. So, why don't we do it more often? Is it time, understanding, or maybe just feeling overwhelmed? Drop a comment below and let us know your thoughts. 💬 At Generational Wealth Financial Services, we're here to make managing your finances easier. From tax resolution to bookkeeping, we've got the tools and expertise to help you stay on top of your game. Let's start a conversation and support each other in achieving financial success! #SmallBusiness #FinancialSuccess #Bookkeeping #TaxTips #MoneyMatters #GenerationalWealthFinancialServices #incometax #taxpreparer #smallbusinessowner #taxprofessional #taxplanning #audit #taxrefund #taxpreparation #taxtips #startup
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